Emerging multinationals investing in developed countries – key factors for a successful cross-border acquisition

Purpose The aim of this work is to investigate the key factors that lead to a successful deal in the case of acquisitions of Western companies by multinationals from emerging countries (EMNCs). Design/methodology/approach The study adopts the qualitative paradigm and uses the case study as a tool of analysis. The case concerns Fondalmec, an Italian unlisted medium-sized joint stock company. The company was acquired in 2007 by the Indian multinational Endurance. Primary data were collected through semi-structured interviews and integrated with secondary data retrieved from relevant documents such as annual reports prepared prior and latter to the acquisition. Findings Research findings show that EMNCs have some country-specific characteristics, which should be adequately assessed and realigned to the characteristics of the host country and targets’ resources during both the evaluation phase and the integration process. Research limitations/implications The research limit is attributed to there being only one case study analysis. Practical implications The study recommends examining the country of origin of the acquirer and suggests EMNCs managers to prefer a ‘light touch’ integration of Western target companies in order to gain access to their intangible assets and achieve success. Originality/value This work differs from much of the existing literature on M&As because it focuses on companies from emerging markets and analyses the target company together with the buyer and their post-operative development strategy. Furthermore, it is one of the few empirical researches on non-listed companies, often overlooked given the greater difficulty of accessing data.